Medtronic pays $2.8M in false claims settlement — 5 things to know

Laura Dyrda -   Print  |

The newly-dubbed Medtronic PLC agreed to pay $2.8 million to the United States Justice Department to settle the false claims case alleging illegal payments to physicians, according to a Star Tribune report.

Here are five things to know about the settlement:

 

1. The justice department alleged Medtronic, among others, made "illegal payments" to physicians in exchange for recommending procedures that weren't safe or effective, according to the report.

 

2. Medtronic denied any wrongdoing in a statement issued late last week. The charges have been dismissed after Medtronic agreed to pay $2.8 million with "no admission of liability."

 

"Medtronic is committed to following appropriate marketing and reimbursement practices at all times, and for many years has had in place a comprehensive and robust employee compliance program," said Medtronic in the statement.

 

3. The Justice department alleges Medtronic made payments to several physicians in 20 states to "encourage health providers to use [a neurostimulation] device off-label." As a result the company created a rapidly-expanding market for their devices, according to the federal lawsuit.

 

4. The suit was brought by a former Medtronic sales representative who was concerned about the neuromodulation devices being used for an investigational procedure. The lawsuit alleges hospitals were encouraged to charge Medicare for the unapproved procedure using the billing code for the FDA-approved procedure after selling the device at a "steep discount."

 

5. There are also allegations the company paid a physician to show other physicians how he performed the off-label procedure.

 

More articles on orthopedic devices:
Spine device company stock report—5 key companies
Smith & Nephew revenue up 2% in 2014—10 things to know
27 spine devices receive FDA 510(k) in January

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